“Race and Housing Values: What Happens When Whites Don't All Move Out?”

Abstract

Previous research on neighborhood racial composition and housing values has demonstrated that as the proportion of Black residents in a neighborhood increases housing values lag. In this paper, we investigate whether there are neighborhood types or locations where racial diversity does not have a negative impact on housing values. This research contributes to the study of residential segregation by focusing on stable integrated neighborhoods. Using metropolitan Philadelphia as a strategic case, we compare stable, integrated neighborhoods to racially transitioning neighborhoods and predominantly White and Black neighborhoods. To do this, we comparatively examine housing prices and rates of home value appreciation from 1990 to 2005. We find that stable integrated neighborhoods have rates of appreciation slightly higher than predominantly White neighborhoods.